Homework Answers
Total Value Added = Portfolio's Actual Return - Portfolio's Benchmark Return
Actual Return = 
[Actual Weight(i) * Actual Return(i)]
= [0.60 * 15%] + [0.40 * 5%]
= 9% + 2% = 11%
Benchmark Return =
[Benchmark Weight(i) * Benchmark Return(i)]
= [0.55 * 13%] + [0.45 * 7%]
= 7.15% + 3.15% = 10.30%
Total Value Added = 11% - 10.30% = 0.70%
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